Motorists have been bearing the brunt of soaring petrol and diesel prices for over a year and now even CNG is likely to become more expensive. A price notification issued on September 30 by the Petroleum Planning and Analysis Cell (PPAC) which is an arm of the Ministry of Petroleum and Natural Gas stated that the price of domestically produced natural gas would be $2.90 per million British thermal unit (mmBtu) from October 1, 2021 to March 31, 2022. Price of natural gas has hence seen an upward revision of $ 1.11 per million British thermal unit which approximately will be Rs. 90 per million British thermal unit.
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The prices will be applicable on a gross calorific value basis.
Earlier this year on April 1, the price of domestic natural gas was kept unchanged at $1.79 per mmBtu for April 2021 to September 2021. A different notification issued by PPAC also mentioned that maximum sale price allowed to natural gas production from deepwater, ultra-deepwater, high pressure and high temperature discoveries was increased from $3.62 per mmBtu to $ 6.13 per mmBtu. In April, the price of natural gas production from deepwater, ultra-deepwater, high pressure and high temperature discoveries was cut from $4.06 per mmBtu to $3.62 per mmBtu. The prices will be applicable on a gross calorific value basis.
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Other than CNG, the imminent price hike is also expected to effect fertilisers and run power plants among others.
